How to price to sell and still make a profit

The asking price you set for your home significantly affects whether you will profit from the sale, how much you will profit and how long your home will sit on the market. Your real estate agent’s knowledge of the overall market and what’s selling – or not – will be invaluable in helping you determine the price. The objective is to find a price that the market will bear that won’t leave money on the table.

Time – Is not on your side when it comes to real estate! Although many factors influence the outcome, time may be the biggest determinant of your profit margin. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. If your goal is to make money, choose a price that will encourage buyer activity (read: fair market value).

Market Comparables vs. Cost! Pricing your home to sell in a timely fashion requires some objectivity. It’s important that you not confuse what buyers are willing to pay versus your belief of your home’s worth. Don’t place too much emphasis on home improvements when calculating a price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.

Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on scheduling showings. Avoid requiring contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

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